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EGIA – Pricing principles

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We review every approach to pricing to ensure your pricing strategy is cost-based and designed to properly produce acceptable gross profit dollars to recover overhead. Contractors will learn the difference between gross profit dollars and gross margins, how to target profitability by business segment, and how to increase cash flow to allow growth. We review divisor, multiplier, markup, gross profit per crew by day and hour, breakeven and dual overhead pricing methods. We will also discuss the idea of aligning a company brand to a market price, and acceptance of the price versus just cost and profit.